On Jul. 16, CFTC issued first award for a foreign whistle-blower. First payment by CFTC whistleblower program to person in a foreign country. $70k has been awarded for a significant contribution leading to a settlement. This is sixth award for information on violations of Commodity Exchange Act.
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DoJ Integrity Elder Fraud Group
On 11 July, DoJ, SEC, CFPB, FTRC task force on elder fraud. Follows President Trump July 11, 2018 signing executive order against fraud. Order established a new task force on market integrity and consumer fraud. Scope Focus on fraud vs. consumers-especially elderly, service members, veterans. As well as corporate fraud that victimizes general public or the…
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CFTC $30mn to Whistleblower
On Jul. 12, CFTC announced largest-ever whistleblower award. Whistleblower provided original information that led to an enforcement action. The $30mn award is the largest made under the CFTC whistleblower program. Previous highest award, paid to CFTC whistleblower, was $10mn in Mar. 2016. CFTC hope award will facilitate upward momentum and success of its program.
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SEC Exam Best Execution Issues
On Jul. 11, SEC issued alert on best execution issues in adviser exams. Described common best execution findings, cited in deficiency letters sent to IAs. Fiduciary Standardu Advisers Act has established a federal fiduciary standard for investment advisers. To seek to obtain best execution of client trades based on facts and circumstances. When directing brokerage,…
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SEC Fine IA Muni Pay-to-Play
On Jul. 10, SEC fined Oaktree $100k for muni pay to play violations. Oaktree Capital Management settled charges of violating muni pay to play rules. Rule Restrictions Found breach of IAA S. 203(e), 203(k) of the Investment Advisers Act of 1940. Violated SEC pay-to-play rule Rule 206(4)-5 for advisers, under IAA, S. 206(4). Prohibits IAs…
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SEC Fines CEO for Failure to Disclose
On Jul. 6, SEC fined managers of ITT Educational for disclosure. SEC settlement vs. two former senior executives of ITT Educational Services Inc. Follows SEC May 2015 settled charged against company for fraud. Alleged Violations Kevin Modany CEO and Daniel Fitzpatrick fined for concealing financial condition. Charges against two executives, were based on same conduct…
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